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Federal Reserve Chairman Advises Students to Think About the Future
By Chris Hassan
Posted August 09, 2012 07:37 AM
Students advised to think before taking out loans.When money is tight, there are always a few ways students can make their path to earning a bachelor’s degree more affordable, including Stafford and Perkins loans. However, before they go with this option, Ben Bernanke, chairman of the Federal Reserve, recommends students do their homework on taking out and eventually paying off their loans. After all, the country's outstanding student loan debt reached $1 trillion this past May, according to FinAid.org.
At a recent town hall meeting in Washington, D.C., Bernanke met with teachers to discuss his views on the importance of financial education, as well as what he believes students should do before taking out loans.
In the chairman’s opinion, degree seekers need to consider the field they wish to enter, what types of jobs they can land after graduation and how much they will earn before they take out a loan.
"If [students] understand and remember some basic ideas - for instance, that it's important to shop around for a loan to get the lowest interest rate, to review the fees charged, and to know how to contact financial counselors and advisers - they will be more likely to make a good decision," Bernanke said during the town hall meeting.
